On the payback period calculation

t = 0 1 2 3 4 5A program cash flow -200 000 80 000 120 000 80 000 80 000 80 000 80 000 80 000 80 000 B program cash flow -200 000 80 000 120 000 120 000 120 000 120 000 120 000 120 000 120 000 0001, the payback period is 2 years how to How is it calculated? t = 0 when the negative cash flow that is the amount of the original investment, t = 0 when the cash flow of the two programs are -200000, indicating that the initial investment of the two programs are 200000, the two programs are the first year of cash flow (recovery) 80000, the second year of cash flow of 120,000, the first year, the second year of recovery 80000 + 120,000 = 200000, the two programs are the first year of cash flow (recovery) 80000, the second year of recovery 80000 + 120,000 = 200000. The payback period of the two programs are 2 years. 2. How do you know that the cash flow of the B program is greater than the cash flow of the A program. From the third year A program cash flow is 80000/year, B program cash flow is 120000/year, and the same number of years, so the B program cash flow is greater than the cash flow of the A program